If D₁ = $1.15, g (which is constant) = 5.5%, and P₀ = $51, then what is the stock's expected total return for the coming year?

a. 2.38%

b. 7.64%

c. 7.75%

d. 2.25%

e. 7.88%

Rebello's preferred stock pays a dividend of $1.10 per quarter, and it sells for $65.00 per share. What is its effective annual (not nominal) rate of return?

a. 6.77%

b. 6.94%

c. 6.88%

d. 7.49%

e. 3.38%